Months ago, after they issued their most recent dismal quarterly earnings report, A123 Systems officials announced they would explore options in order to save the company, leaving the impression they were looking for a buyer.
On Tuesday the heavily subsidized electric vehicle battery manufacturer released its latest financial bad news, but also disclosed that it also had a potential buyer – from China. According to media reports, just as A123 reported another $82.9 million in second-quarter losses, good news also magically materialized as Wanxiang Group Corp. was announced as a new investor. A123 had reported recently to the Securities and Exchange Commission that its ability to continue as a viable company was “a going concern.”
The good news/bad news announcements continue a trend by A123 in which every time the company has a negative media hit or stock downturn, a new press release comes out to give the … Read More ➡
So far American taxpayers have been forced – through stimulus loan guarantees from the Department of Energy – to “invest” $1.4 billion in a Japanese car company to build an unproven, impractical, expensive vehicle at a Tennessee power plant.
And now it can’t stand the heat.
Nissan has been dealing with complaints from owners of its Leaf electric car who reside in hot-weather states like Arizona, who say their vehicles have lost range capacity.
“When I first purchased the vehicle, I could drive to and from work on a single charge, approximately 90 miles round trip,” said one Phoenix-area Leaf owner to CBS television affiliate KPHO. Now, “I can drive approximately 44 miles on this without having to stop and charge.”
The usefulness of an electric car that costs at least twice the equivalent gas-powered vehicle, at a 90-mile range, that requires hours to fully recharge, is dubious … Read More ➡
As the North Carolina Utilities Commission tries to make sense of the farcical events that surround its approval of the merger of Duke Energy and Progress Energy into the largest public electricity company in the nation, the deeper they dig, the dumber Duke looks.
Yesterday the 6-member panel (one seat is unfilled due to political wrangling) heard from former Progress CEO Bill Johnson (pictured). Throughout the 18-month merger process the two companies proclaimed to anyone who cared – including federal regulators, utilities commissions in at least six states, and Wall Street – that Johnson would carry that role over to the combined company, while former Duke CEO James Rogers would elevate to chairman.
Instead, according to Johnson’s testimony, within two hours after directors from both companies offered “handshakes, pats on the back, congratulations all around,” he was jettisoned and replaced by Rogers. The hearings were covered by most of … Read More ➡
A week and a half ago cash-poor A123 Systems, recipient of $279 million-plus in federal money and millions more from the State of Michigan, announced it would access $39 million via a stock sale to institutional investors and the release of other cash after meeting requirements related to its existing reserves.
It has been downhill ever since – all the way down to its all-time low of 75 cents per share price Tuesday (and 69 cents Thursday morning). It may be too much for even these masters of the press release cycle to overcome by creating good news out of thin air.
A123 is in the throes of a deathwatch. Occasionally its leadership has goosed its stock price by telling the media about real-or-phantom positive developments – like new contracts with automakers, new developments in China and India, or a technological breakthrough – but every time the … Read More ➡
The tempest that followed the “boardroom coup” after Duke Energy’s merger with Progress Energy, in which former Progress CEO Bill Johnson was dismissed in favor of Duke CEO James Rogers, has only worsened since the North Carolina Utilities Commission approved the deal last week.
Rogers testified before the NCUC on Tuesday, after the directors of the newly combined Duke jettisoned Johnson just hours after the regulatory approval, even though both companies asserted beforehand – ever since the expected deal was announced last year – that he would lead the united company, while Rogers moved up to chairman. Utilities commissioners, former Progress directors who approved the merger, and the public were deceived into believing Johnson would oversee day-to-day operations.
“Have we as the commission been misled or, as others have said, duped in this process to get approval of this merger?” Commissioner Susan Rabon asked. “I hope you … Read More ➡
After a lengthy process that overcame a demanding review at the North Carolina Utilities Commission and two rejections by the Federal Energy Regulatory Commission, Duke Energy won approval to merge with the Tar Heel State’s other major investor-owned utility, Progress Energy.
Then Duke’s board immediately pulled a fast one and fired the man they said all along would be the joint entity’s CEO, Bill Johnson, who would have continued from the same role he had with Progress. Instead leading the new combined company will be Duke’s current CEO, James Rogers. Throughout the merger approval process everyone understood he would abdicate that role to Johnson while remaining as company chairman.
The NCUC and state attorney general, Roy Cooper, were shocked by the move and are not pleased. Even less happy are many (now) former directors for Progress, who told the media last week that they never … Read More ➡
We’ve heard this story before.
Much like taxpayer-backed Abound Solar – which just revealed it would declare bankruptcy – General Electric announced last week it would suspend construction of a solar panel manufacturing plant in Colorado. The excuse given was that GE plans to focus on research and development to improve the technology and efficiency of the panels it wants to produce.
“With the re-focus on technology, we’re sizing our team accordingly and really focusing our people on the technology side as we take this pause in the manufacturing build-out,” said Lindsay Theile, communications leader for GE’s renewable energy business, to the Web site Recharge.
That’s what officials at Abound said in February when the company – also based in the Centennial State – lopped off 70 percent of its employees while it allegedly performed upgrades to its plant to manufacture more efficient solar panels. That move followed an … Read More ➡
The suspicions of Oklahoma Sen. James Inhofe were correct: Rather than sitting before the House Energy and Commerce Committee three weeks ago to explain the ways he “crucified” oil and natural gas companies, instead Al Armendariz – who cancelled his appearance at the last minute – met with the Sierra Club for a job interview.
This time the recently resigned EPA’s Region 6 administrator will eagerly attack another fossil fuel, joining the litigious environmental group as part of its “Beyond Coal” campaign. If there was any question that Armendariz unfairly regulated the gas and oil businesses under his authority in Texas, Oklahoma, Louisiana and other neighboring states, the Sierra Club announcement left no doubt.
“I know how important it is to transition to cleaner sources of energy that don’t pollute the air that our children breathe,” he said, “and I’m proud to be working on a campaign with … Read More ➡
The next time a green energy company announces it is intentionally slowing down for a transition phase, or that a technology breakthrough is just around the corner, or that all that’s needed for future success is just a little more taxpayer “investment” – don’t believe it. It’s likely a lie.
The latest example is Loveland, Colo.-based Abound Solar, which only four months ago laid off 70 percent of its employees in what it said was a plan to upgrade its plant to manufacture more efficient solar panels, with plans to restore production levels and rehire most employees within six to nine months. Yesterday – hidden under the news that the Supreme Court upheld Obamacare – the company released a statement that said it would end operations next week, liquidate, and make unemployed its remaining 125 workers.
The Department of Energy had awarded Abound a $400 million loan guarantee, $70 … Read More ➡
Highlighting that electric vehicles are no more than a scheme to extract money from taxpayers rather than sell a viable product, the producer of a dismal-(but still highest) selling all-electric car in the U.S. confirmed they wouldn’t exist at all without government.
Francois Bancon, Nissan’s global general manager of product strategy and planning, could not have been more clear in a discussion with the media at the Australia launch of the all-electric Leaf. In the U.S., taxpayers are backing a $1.4 billion loan guarantee for Nissan to retrofit a Tennessee manufacturing plant to produce the Leaf.
“Yeah, [government support] is the key,” Bancon said in an interview reported by Web site Car Advice. “This technology is expensive; the car is expensive.
“Where we sell the best is where the governments offer their support…which is not only the incentive for the direct purchase, but also they are investing … Read More ➡